From 1 December 2012 businesses with no business establishment in the UK, but which make taxable supplies to the UK, will need to register for VAT in the UK, regardless of their level of turnover.

Prior to this date, businesses had been able to take advantage of a £77,000 per annum threshold. After 1 December the threshold for businesses without an establishment in the UK will, in effect, be zero.

This change does not affect the sale of goods to the UK from another EU country, which is covered by the distance selling rules, neither does it apply on business to business transactions where the reverse charge procedure applies.